The goods and services can be exported either on payment of IGST or Letter of Undertaking (LUT) without payment of IGST.
[Notification No. 16/2017-Central Tax, Circular Nos. 2/2/2017-GST and 4/4/2017-GST]
Option 1
Export without payment of IGST & Refund Claim of Accumulated ITC
As per Rule 96A of the Central Goods and Services Tax Rules, 2017 ( The CGST Rules), any registered person exporting goods or services without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.
Option 2
Export Procedure on Payment of IGST & Refund of IGST Paid
In case of goods exported on payment of IGST, refund of IGST can be claimed after the goods have been exported –Rule 96 of CGST Rules : Refund of integrated tax paid on goods exported
For Export of goods the shipping bill is the only document required to be filed with the Customs for making exports.
Requirement of filing the ARE 1/ARE 2 has been done away with.
The shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only after submission of export general manifest and furnishing of a valid return in Form GSTR-3B/ 3 (as the case may be) by the applicant.
The details of the relevant export invoices contained in FORM GSTR-1 shall be transmitted electronically by the common portal to the system designated by the Customs and the said system shall electronically transmit to the common portal, a confirmation that the goods covered by the said invoices have been exported out of India.
Upon the receipt of the information regarding the furnishing of a valid return in FORM GSTR-3/3B (as the case may be) from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill or bill of export shall be electronically credited to the bank account of the applicant mentioned in his registration particulars and as intimated to the Customs authorities.
Refund procedure shall as a consequence come into operation only when the registrants file the above mentioned returns.
Tax Invoices Format for Exports
In cases of exports, the invoice must also contain a declaration citing that GST has
been paid on such exports. The text to be used in such cases is below:
- “Supply Meant For Export On Payment Of IGST”
– if IGST has been paid on the exports
- “Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment
Of IGST”
– if IGST has not been paid
In export invoices, the following details related to the buyer are mandatory:
i. Name and address of the buyer
ii. Delivery address
iii. Destination country
iv. Number and date of application for removal of goods for export
GST and Exports –
Attention Exporters GSTIN / PAN and Invoice information in Shipping Bill:
1. Quoting GSTIN in Shipping bill is mandatory if the export product attracts GST for domestic clearance.
2. Quoting PAN (Permanent Account Number), which is authorized as Import Export code by DGFT, would suffice if the exporter exclusively deals with products which are either wholly exempt from GST or out of GST regime.
3. Without GSTIN or PAN or UIN, the Shipping bill cannot be filed.
4. The claim for refund of IGST paid or Input Tax Credit on inputs consumed in goods exported cannot be processed without GSTIN and GST Invoice details in Shipping Bill.
5. Commercial Invoice information should be provided in the Shipping Bill. Wherever Commercial Invoice is different from Tax Invoice, details of both have to be provided in the Shipping Bill.
6. Taxable value and Tax amount should be mentioned against each item in the Shipping bill for processing the refund amount. Multiple tax invoices issued by same GSTIN holder are allowed in one Shipping bill for the same consignee.
7. State code is part of GSTIN numbering scheme. However, in the Shipping Bill for the field “State of origin” declare the State code from where export goods originated as it was being done before. Bond or LUT along with Shipping Bill:
8. As per rule 96A of the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11.
9. Instructions issued to all jurisdictional authorities to ensure smooth clearance of export consignments.
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